A modest reaction on Thursday from investors to an equally cautious trading update from logistics platform WiseTech at yesterday’s annual meeting.
The shares edged up 0.8% to $30.37 on news in the update that the company had seen a recovery since June (though they peaked at $31.05 before easing in the afternoon).
CEO Richard White said in the update ahead of the meeting (and his address to shareholders) “since June we have seen a recovery, with momentum improving and continuing in FY21.”
“By the end of July, CargoWise user numbers were close to pre-COVID-19 levels and have since been trending upwards and above historical averages.”
While remaining cautious about the ongoing impacts of the pandemic WiseTech stuck to guidance provided at its full-year results in August.
Based on these assumptions, and subject to no material adverse events, it expects FY21 revenue to grow between 9% to 19%, to $470 million to $510 million, and EBITDA to grow between 22% to 42%, to $155 million to $180 million.
The announcement included four new significant customers for the half-year – as many as it won in the previous two years.
Mr. White repeated previous comments that the pandemic has been good for WiseTech.
He told the meeting that the pandemic is providing a tailwind for the group, accelerating the use of its global logistics software by major freight forwarders and logistics groups.
“It has accelerated the longer-term trend away from legacy systems with bolt-together micro-point applications with inherent complexity and cybersecurity risks, towards integrated global technology that facilitates the ability of logistics providers to navigate the new world normal,” said Mr. White.
The meeting again heard that the company is slowing its hectic acquisition program that had seen short-sellers and other market sceptics question the quality of its reported revenues and earnings.